How lenders want you to manage and develop a start up

In order for a lender to approve an application for finance for the purchase of premises for a squat, build work or equipment, they require a mandatory background check on you as well as the plans for your business, but they have certain internal guidelines that they want you to adhere to when formulating your plans.

The Current Lending Market

During the rise of the pandemic, many lenders have withdrawn from this market as they see the startup proposition as too risky. There is no doubt that they will return to the market in the next few months however, in the meantime other avenues of finance have to be utilised.

With the bad also comes some good as sourcing a site has become a little easier recently with the changes to the planning designations as, in many cases, has now removed the need to obtain a change of use for the property in turn, saving you a lot of time.

What lenders are looking for

They will be looking for you to only set up one surgery in its entirety at the outset as generally for most squat practices the number of clients will be minimal initially and this will grow over time. The logic of this is clear in that there is little point in setting up 2-3 surgeries with all the necessary equipment as the expenses of this are then wasted when they are not used.

They will be happy however to allow you to divide the property during the refurbishment and install the correct fire doors, flooring, water, and electricity supply to the additional surgeries. This means that as the practice grows it is possible to expand by fitting an additional surgery quickly.

They will want you to obtain 2-3 build quotes and would prefer that you use an experienced dental builder who has a good history of work in the dental sector and may be known to the lender. They will also want the build to be sensible keeping costs as low as you can without compromising the quality and finish that is required. 

You need to look carefully to ensure that all fire requirements and ventilation levels meet new requirements to deal with Covid-19. These should be reviewed carefully with regard to air filtering to reduce down times and ensure that all the various standards set by CQC are achieved. It is also important to look carefully at the cost aspects of your dental practice such as waiting room interior, reception desks and any other decoration and ensure it is of a good standard within your budget.

The same applies to equipment costs, you should shop around first to compare different prices to ensure you opt for the best price for the equipment you need. If it can be deferred to a later date do so to ensure that you keep your fixed costs at the outset as low as possible.

Financial Projections

The financial projections that lenders require must be in a well laid out format showing both profit and loss and cash flow for a three-year period which will identify the way the business will move forward for both parties involved. With limited income and plenty of fixed costs on the day of opening, losses will probably be incurred in the first few months until income grows to a level sufficient enough to break even and then make profit. This turnround to profit usually happens around 6-8 months of the practice opening. 

Tips to reassure a lender

So, how can you reassure the lender this will be a success:

  • Try and negotiate a rent-free period of leasing to enable you to complete the work and open.
  • Seek an interest only period from the lender if possible.
  • Keep staff costs down at the outset and employ a nurse and receptionist only.
  • Maintain an associate role elsewhere – you may only be at the new practice 1-2 days in the first few months – working elsewhere for the rest of the week will bring in income to cover household expenses if necessary and provide funds to inject into the business to cover initial losses.
  • Have spare funds available to cover any losses, these can be put into the business at the outset.
  • Robust plans for marketing and branding your business. Start marketing once the build begins.
  • Plan to use professionals – Dental builders / solicitors / accountants / brokers.
  • If bringing clients or extra income into the business at the outset – set out who they are and why they are coming – check your associates contract to ensure no conflicts of interest.
  • If more than one dentist is involved, then this assists income / work share. 

Utilise the skills and knowledge of others to assist you in this venture, they have seen the challenges before, and they have dealt with them and know what the lenders want from you and the plans.

Work with people or firms who have experience of start-ups. Attending courses will help prepare you for the challenges you may face. 

If you ensure that you control costs and carry out the proper investigation of competition, location and use professionals with experience of the sector and you obtain accurate and realistic projections, you will provide yourself with the best chance of obtaining finance and of starting a successful dental practice.

Starting a Dental Practice: Get Started

We’ve been helping the UK’s dentists start their own practices for nearly 20 years and we know exactly what it takes to make your practice a success!

Our Dental Practice Start-up Programme is a hands-on consultancy service designed to take you through your whole journey to becoming a dental practice owner. Book a free, no-obligation consultation with one of our team at a time that suits you (including evenings). We’ll call you back and have a chat about how we can help start your dream practice.

Contact us today for all the advice, support and expertise you’ll ever need to start a dental practice.

Learn More: Starting a Dental Practice

For more information please check out the articles and webinars in the start a dental practice section of our Learning Centre, like our guide on How to Start a Dental Practice in 13 Steps.

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

Trying to save UK jobs

Today, Rishi Sunak announced his latest endeavour to try and stave off a major calamity over the winter months by trying to minimise job losses over these difficult times.

Whilst some may be hopeful about this initiative and that it will help many, others maybe thinking that this is just delaying the inevitable.

Nevertheless, whatever your viewpoint the key points are:

  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
  • Workers must do at least a third of their normal hours
  • Employers will pay staff for the hours they work
  • The government and the employer will pay a third each for the hours they can’t work
  • It means someone working a third of their hours would receive 77% of their pay
  • The grant will be capped at £697.92 per month
  • All small and medium sized businesses will be eligible for the scheme
  • Larger business will be eligible if their turnover has fallen during the crisis
  • It will be open to employers across the UK even if they have not previously used the furlough scheme
  • The scheme will run for six months starting in November and replaces the “furlough” scheme
  • It means the government will pay a maximum of 22% of someone’s wages, down from 80% at the start of the furlough policy

Bounce back loans

In addition, the chancellor also announced changes to loans taken out by any businesses. Instead of having 6 years to pay back loans, these can now be paid back over a 10 year period.

Helpful for cash flow for many struggling businesses.

The government continues its generosity.

Building a Healthcare Business: Further Information

To find out more about building a successful healthcare business, check out our Learning Centre, full of articles and webinars covering how to buy, start, grow and sell a medical health company, or book a free, no-obligation consultation with one of the team. 

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

The End of a Decade in UK Dentistry

What Happens Next in UK Dentistry?

In this video, Arun discusses dentistry in the UK over the last decade and what he thinks will happen in the next 10 years in Dentistry – Enjoy!

Building a Healthcare Business: Further Information

To find out more about building a successful healthcare business, check out our Learning Centre, full of articles and webinars covering how to buy, start, grow and sell a medical health company, or book a free, no-obligation consultation with one of the team. 

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

Teddie Puts a Smile on all our Faces

Teddie is a regular well loved visitor to our offices always putting a smile on all our faces!

She’s transformed our lives in the last 18 months and even had a massive impact on the Samera business! She sits smiling on our team website page and in fact, was the reason two key team members joined Samera because when they saw her there they understood our business culture straightaway!

So how does your business culture differ from a sea of sameness? What makes you special? Do you have a Teddie in your business?

If you are in Surrey and need some business advice pop in and come and say hello to Teddie she gives the best welcome!

Whether you’re interested in accountancy and tax, raising finance, buying and selling a practice or growing your profits, we (and Teddie!) are here to help!

Business Advice for Dentists

Is there really a pot of gold at the end of the rainbow?

Sweat, stress, anxiety and sleepless nights – my business advice for dentists.

Don’t kid yourself if you think owning and running a business is your path to riches and financial freedom. For many entrepreneurs there isn’t a pot of gold waiting for them, but in fact stress and many sleepless nights.
Whilst on social media and TV it may appear that owning and running a business is easy, the truth of the matter is that most businesses fail – Why?

Because running a business is NOT easy.

Challenges come in many forms, including:

  • Building a motivated and committed team
  • Getting new customers and looking after existing ones
  • Managing cash flow
  • Trying to make a profit
  • Dealing with taxes….

Just to name a few.

But, in my opinion, running a business requires you, as an individual, to really step into the unknown.

A zone where you don’t know if you will have sufficient funds to meet payroll, or whether a client will pay you on time (or even pay you at all), or the bank will support you in your hour of need.

The uncertainty of business can be too much for many, which is completely understandable, especially if you have loved ones to support.

Yet, for those that can tolerate the pain, and the rollercoaster of building a business, the possibility of a pot of a gold waiting for them is still slim.
Good luck, fortunate timing, hard work and tenacity have a huge part to play in building a successful business, but most importantly your mind set is the thing that will determine if you reach your pot of gold.

Income vs Building Wealth

After struggling to build a business with a committed team, many individuals settle for building a business around them, where they are the monkey AND the organ grinder.

I meet many solo dentists, or business consultants, who do just this, building a decent income stream dependent on their efforts, but the problem here is that if they stop working, there is no income, and ultimately there is no value created.

The key is to build a business where it is not reliant on you being the CEO, chief financial officer, the IT manager and the Client manager, as well as the cleaner…this will not be sustainable and will ultimately create further stress for you, and not be worth anyone wanting to buy.

Remember the pot of gold waiting for you?

Business buyers want to buy a business that is not reliant on one party, they want to spread their risk, they want to buy something that will continue to grow into perpetuity, with or without you in the business.

Getting that right is downright difficult, but for those that achieve that, the pot of gold can truly become a reality.

That’s when you have built considerable wealth, which can be life changing for you and your loved ones.

So what about Mind Set?

As I highlighted earlier, your mind will ultimately be the determinant of your success.

Expect knock backs after knock backs, expect problems, expect difficult team members, difficult customers, difficult times, lack of cash flow, tough decisions, and of course hard work.

Business = Problems

Personally, I’ve had my fair share of all of these, including employment tribunals, cash flow issues, contractual issues, difficult clients, all whilst dealing with children in hospital, dealing with dementia with parents,  but truth be told, I relish nothing more than a challenge in business, I actually thrive on solving problems.

But if you can handle this, and your family can handle this (as you need support from them), then perhaps that pot of gold is waiting for you at the end of the rainbow?

It’s there for the taking, but remember, only a few will ever reach it – are you one of the few?

Building a Healthcare Business: Further Information

To find out more about building a successful healthcare business, check out our Learning Centre, full of articles and webinars covering how to buy, start, grow and sell a medical health company, or book a free, no-obligation consultation with one of the team. 

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

Changes at Royal Bank of Scotland 2019

You will have seen many articles in the press regarding the process that the Royal bank of Scotland is to go through to reduce its customer base and pass customers to the “challenger banks”.

The banks for the switching date of 25 February have been named as:

  • Arbuthnot Latham & Co Ltd
  • Clydesdale Bank plc
  • Co-operative Bank plc
  • Hampden & Co
  • Metro Bank plc
  •  Santander UK plc
  •  Starling Bank Ltd
  •  Svenska Handelsbanken AB
  • TSB Bank plc

Expected to join later in 2019

  • Monzo bank plc
  • Nationwide Building Society

You can, of course, use this opportunity to shop around and you do not need to be limited to the provided list of possible banks.

Call us and talk through your options. We can help find out who is the best in the market for your business and what suits you the best, rather than be forced into another bank that may not be right for you.

There is no obligation or charge for the discussion that could provide you with a better lender.

Click here to rad our article on How to finance a healthcare business.

For More Information on Changes at Royal Bank of Scotland

Get in touch with our finance team today. They will be happy to answer all your questions.

[email protected]
samera.co.uk

Commercial Loans for Healthcare Businesses

We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.

You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.

For all our previous webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

Is Cash Flow a Bit Stretched at this Time of Year?

Your dental practice’s cash flow can be stretched at this time of year due to several things;

  • A slowdown in business over the holiday period.
  • Extra payments due, such as tax.
  • Cash flow has been used to buy equipment / cars for the business etc.

All of these can be covered with the introduction of finance for either tax/cash flow or to refinance the asset/equipment you bought earlier in the year.

Equipment or vehicles for your business can be funded and cash reintroduced if you have bought them out of the cash of the business.

Assets can be funded up to six months after they were bought, and in some cases 12 months. We can source finance for you in the UK and Eire and we make no charge to you, the client, for this.

Obtain some quotes to see how easy it is to fund assets and improve your cash flow.

Click here to read our article on How to finance a healthcare business.

For more information on your dental practice cash flow

Contact our finance team today. They will be happy to answer all your questions!

[email protected]
samera.co.uk

Commercial Loans for Healthcare Businesses

We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.

You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.

For all our previous webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

The Success of Samera Bootcamp 2018

The Setting up in Practice Bootcamp 2019 is fast approaching on January 25th in London. With 20 clients booked in, I thought it would be interesting to reflect on the Samera Bootcamp 2018, held in Manchester, when we had a similar number of attendees.

So, of the 20 attendees, what progress did clients make in buying /setting up practices?

Three clients have been successful in fulfilling their ambitions outlined at Bootcamp. Furthermore, several others have been viewing practices and sites and are still ongoing.

One client bought a practice in South west London financed through Samera Finance.

Two others have been involved in setting up practices in South / South West London. One client bought a practice that had been set up as a start-up (squat), the premises had been all fitted out with equipment etc. However, the practice had never opened due to planning issues. These issues have now been resolved and Samera Finance arranged the finance through one of the major lenders.

The second squat /start up was a practice that had been closed for two years. This needed updating in both equipment and premises, and the finance has again been arranged by Samera Finance.

Are you are thinking about buying a practice or setting up a new practice? Have a look at the Bootcamp 2019 page and see how the bootcamp could benefit you. Next year, we could be talking about the practice you have bought or set up as one of our success stories!

Sign up for one of our business training events

Sign up now for any of our live events or webinars, designed to teach healthcare providers how to build a better business.

We run a mixture free and paid online webinars covering everything from compliance and marketing to accounts, tax and raising finance, as well as live events like our start-up bootcamps or finance workshops.

Check out our events calendar to see which of our webinars, courses or bootcamps is right for you.

What 2018 Taught Me and How to Handle 2019

I felt writing a blog post that really reflected how I am feeling as we enter the dusk of 2018 and my thoughts on how to handle 2019.

For many years, I never thought I would make it to 45 years old (but I did back in February) as my mum never made it past that age – so for many years let’s say I just had a few “issues” feeling that I had to pack as much as possible into my life whilst I was alive and kicking!

And that’s what I did in 2018, and will continue to do in 2019 and beyond until the curtain calls.

Pack it in

These are 3 words that really resonate with me and I know my children are pretty much exhausted with both Smita and me and our constant seizing opportunities that life has to offer!

The true highlight of 2018 was welcoming Teddie (our 1-year-old Cavapoo) into the family, and since then it has been pretty much dog-mad in our household.

Holidays and weekends away have all involved Teddie coming with us (it’s a new phenomenon to have a dog sleep on you in a campervan – as if one can sleep in a campervan and then to have a dog sleep on top of you!!!)

Ageing parents

Whilst Teddie brought joy, sadness was very much evident too, with deaths abound and ageing struggling dads. The cycle of life can be so cruel.
Whilst it was a “tough” year, I am very grateful for all the family, friends and clients and the opportunities that came my way. Very grateful and humbling indeed.

How to Handle 2019

With the news still dominated with our divorce from Brussels, its now more important than ever to keep pushing forward, whatever the outcome may be.

The media is embracing negativity, I am personally favouring to ignore the negative news and focus on one’s own actions.

Yes, economic uncertainty appears to be unravelling as we speak, and the marketplace appears to be getting more competitive, yet buying a dental practice still is wishful thinking for many, as prices remain high.

Yet experience has taught me when confronted with a challenge, an opportunity is never far behind.

Challenges always bring another way to think about things, and how to tackle them. Don’t shy away from problems, in fact embrace them in 2019, you will surprise yourself and grow broader shoulders whilst taking on the world.

You just have to possess the right frame of mind, attitude and the ability to see through the fog that is currently around.

2019 requires us to be flexible, adaptable, and a willingness to continue taking bold steps, even when others around are fearful.

That’s when you will grow, and succeed.

On that note, I am off to France for the beginning of the ski season, wish me luck, and I do hope it won’t be a whiteout on the slopes or in 2019 for you or me.

For my ideas and views on what you need to do in 2019 in your business take a watch of the video below:

If you are liking our videos I urge you to subscribe to our channel as 2019 is all about video and sharing our experiences on video.

Christmas Opening Hours

Please note our offices are closed over the Christmas period and we will be back in the office on the 2nd January!

Finally a very Merry Christmas and a Happy New 2019 to you and your loved ones!!

See you in 2019!

Building a Healthcare Business: Further Information

To find out more about building a successful healthcare business, check out our Learning Centre, full of articles and webinars covering how to buy, start, grow and sell a medical health company, or book a free, no-obligation consultation with one of the team. 

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.

Dental Volunteering with Bridge2Aid (B2A)

Dental Volunteering with Bridge2Aid (B2A)

Almost 48 hours after leaving London Heathrow, we arrived in Chato, a 5-hour drive from Mwanza, on Lake Victoria.
Exhausted, yet excited, we had taken 3 planes (an A380 as well as a Dreamliner for the plane geeks), a ferry and enjoyed a bumpy 5-hour safari drive in our trusty Toyota Landcruiser to arrive in Chato to observe the power of good deeds, hard work and commitment from people making a difference.
Yet I was merely a visitor, a trustee of Bridge2Aid, the real hard work was being done by the volunteers who were on an 8-day assignment to train local clinical officers in emergency Dental care – no mean feat.
There were four of us visiting the amazing work being carried out by the charity volunteers.
Our touring group was lead by Shaenna Loughnane, Bridge2Aid CEO, Jeremy Bagg, Dean of Glasgow Dental School, Lucy Mander of Dental Design, and my good self, visiting in the capacity as the Treasurer trustee of Bridge2Aid.

Humbled by what we saw

I have to say it was truly humbling to see the whole operation in action in Chato.
Set up in a small concrete building in the middle of nowhere which had no electricity the clinical team from Bridge2Aid had set up a six-person surgery (using very basic equipment) plus a compliant Sterilisation room. Jeremy who is an expert in this area was most impressed considering there was no electricity.
Just imagine trying to operate a Sterilisation room without any electricity – yet it functioned almost perfectly, operated by 3 volunteer nurses from the UK and USA. 

The Visiting Dental Team of the UK and USA

The visiting dentists on the programme were a friendly yet focused group wanting to help the local clinical officers become proficient in dental extractions.
The visiting dentists ranged in age, from recently qualified all the way to retired dentists wanting to continue helping. All but one of the group were from the UK, with the other Dentist coming all the way from California.
To enhance the camaraderie and ensure things were done in good spirit Abba was played daily at each morning huddle meeting!
Patient after patient, the visiting dental volunteers supervised each and every extraction being carried out by the local clinical officers.
It was hard and exhausting for all concerned, standing on their feet all day, in very basic conditions, with mosquitoes and flies, along with very basic sanitation facilities.
But even in the hardest of conditions, the team trooped on and got on with what they were here for – helping others.
Truly inspiring. 

Sustainable work by training local clinical officers.

As far as I am aware B2A is the only Dental charity that puts sustainability at the core of its ethos.
Whilst other Dental charities may go into a country and help for a couple of weeks in treating patients, B2A’s model is all about training local clinical officers in how to extract teeth. This ensures once the volunteers have left, the local Tanzanian clinical officers can extract teeth from patients when required.
So instead of the B2A volunteers pulling teeth, their job was to train the clinical officers in how to do this.
So at the beginning of the week, the clinical officers had never actually extracted any teeth, but by the end of their training, they were extracting 30 teeth a day – each!!!!
More than most Dental students perform in their 5 years at Dental school in the UK.

Over 526 clinical officers trained and 50,000 patients treated.

By the end of the week, the clinical officers had extracted over 1000 teeth and seen over 1100 patients.
Interesting to note, since Bridge2Aid started in Tanzania, 50,000 patients have been seen and 526 clinical officers have been trained in Dental extractions greatly helping many rural communities across Tanzania.
Sustainability is at the core of this charity.
The old saying of you can feed a man a fish, or you can teach a man to fish is truly at the core of B2A and should be something that must be celebrated.
Long may it continue.
Finally, a big thank you to all the people involved in this trip, it was humbling yet inspiring, and has provided me with further energy to try and propel the excellent work the charity continues to do.
To get involved, donate or raise funds for Bridge2Aid please visit their website.

Building a Healthcare Business: Further Information

To find out more about building a successful healthcare business, check out our Learning Centre, full of articles and webinars covering how to buy, start, grow and sell a medical health company, or book a free, no-obligation consultation with one of the team. 

For all our previous articles, webinars and video updates, subscribe to our YouTube channel and follow us on Facebook, LinkedIn and Instagram.